U.S Authorities Uncover Over $100 Million IRS Fraud Scheme Allegedly Orchestrated by Two Nigerians

…as Akinade Raheem and Abayomi Eletu Face Up to 50 Years in Prison for Identity Theft, Wire Fraud, and Money Laundering Conspiracy Spanning 2018–2023

Two Nigerian men, Akinade Raheem and Abayomi Eletu, are now at the center of a sweeping international fraud prosecution in the United States, where they are facing the possibility of up to 50 years in prison each over an alleged sophisticated tax refund scam that authorities say siphoned more than $100 million from the Internal Revenue Service (IRS).

According to a statement released by the U.S. Department of Justice on Wednesday, Raheem and Eletu allegedly worked alongside accomplices in a coordinated scheme involving identity theft, impersonation of tax professionals, and the submission of fraudulent tax refund claims.

The pair are accused of filing more than 300 false tax returns, collectively seeking over $100 million in refunds from the IRS. The alleged crimes include conspiracy to commit mail and wire fraud, money laundering, aggravated identity theft, and access device fraud, among others.

Investigators say Raheem, 43, and Eletu, 42, who are reportedly based in the United States and the United Kingdom respectively, obtained sensitive personal information belonging to tax professionals and taxpayers between 2018 and 2023. The data reportedly included names, addresses, and Social Security numbers.

With this stolen information, the defendants allegedly created online IRS accounts in the names of victims and used them to request confidential taxpayer information, effectively positioning themselves to control and redirect tax-related communications and refunds.

Authorities further allege that the duo manipulated taxpayer records by changing victims’ mailing addresses to locations controlled by their alleged co-conspirators. This tactic ensured that IRS correspondence and refund-related documents were diverted away from legitimate taxpayers and instead intercepted by members of the scheme.

Once fraudulent refunds were successfully processed and deposited onto prepaid debit cards, the funds were allegedly laundered through structured transactions designed to avoid financial reporting thresholds. These included the purchase of money orders from U.S. postal offices and retail outlets in carefully split amounts.

The scheme allegedly extended beyond cash conversion, with the suspects using illicit proceeds to purchase used vehicles from auction platforms. Some of these vehicles were reportedly shipped to Nigeria. The funds were also allegedly spent on designer clothing and other luxury goods.

Both defendants are charged with one count of conspiracy to commit wire and mail fraud and one count of conspiracy to commit money laundering.

While Eletu faces additional charges, including five counts of mail fraud, three counts of wire fraud, seven counts of access device fraud, and 21 counts of aggravated identity theft, Raheem is charged with 14 counts of access device fraud and 14 counts of aggravated identity theft.

“The defendants face maximum penalties of 20 years in prison for conspiracy to commit mail and wire fraud, 20 years for money laundering and 10 years for access device fraud, as well as a mandatory sentence of two years for aggravated identity theft,“ the statement read.

According to court documents, indictments related to the case were unsealed in both the Northern District of Georgia and the Western District of Texas.

Eletu has since been arrested in the United Kingdom following a request by U.S. authorities, while legal proceedings are expected to continue across multiple jurisdictions as prosecutors pursue what they describe as a complex, multi-year financial crime operation spanning continents.